As per Section 15 of the CGST Act, tax is payavpa on the total value of supply which shall include the expense which the supplier of service is liable to pay in course or providing such service. Hence, the amount of salary paid by the manpower supplier to his labour shall also attract gst.

What should be happened when the man power supplier generate Debit Note on supply of labour as Reimbursement of Expenses and generate invoice for service charges on the amount of salary reimbursement amount. Say, in the month of March, the main power supplier issued a Debit note for ₹ 5 lacs on salary payment as Reimbursement of Expenses and generate a invoice of ₹ 1 lacs i.e. 20% of the Salary Reimbursement amount. Whether the both are taxable under GST or not? if both are taxable then how could GST can be charged of Salary

If the Services of Pure Agent Services, the Portion of Salary Paid subject to Fulfillment of Pure Agent Condition - GST need not be charged on the same. Only on the portion of Management Fee same needs to be charged.